Ethereum Rollback Riddle: Reversing a $1B Heist or Upholding Immutability?

The post Ethereum Rollback Riddle: Reversing a $1B Heist or Upholding Immutability? appeared first on Coinpedia Fintech News

Ethereum is in the spotlight again, but not for good reasons. Hackers broke into Bybit’s secure storage, known as a cold wallet, and stole over $1 billion worth of Ethereum tokens. More than 401,000 ETH, including staked tokens, were taken. Following the news, Ethereum dropped over 5% to $2,700 in the last 24 hours.

In response to the controversy, Crypto analyst, Justin Bechler argues that Ethereum is facing an impossible dilemma due to the involvement of North Korean hackers in illicit transactions. His claim stems from a growing debate on whether Ethereum should take action to reverse these transactions or allow them to stand. 

A Tough Decision for Ethereum

Recently the X has turned into a war zone where many are trolling the ETH founder while others suggest he should stay out of controversy by taking action against the hackers. Matthew R. Kratter, a well-known analyst, believes Ethereum’s leadership, including Ethereum’s co-founder vitalik buterin

vitalik buterin

Vitalik Buterin is a professional programmer and Co-Founder of Ethereum. Buterin, along with Gavin Wood, Charles Hoskinson, Joseph Lubin, and Anthony Di, launched Ethereum in 2014. He co-created Ethereum when he understood that he could construct a new, possibly enhanced version by iterating on the Bitcoin blockchain. He has been involved in the Bitcoin community since 2011, writing and co-founding articles for Bitcoin magazine.
 
Details:
Organization: EthereumLocation: CanadaEducation: Vitalik graduated from the University of Waterloo (2012–2014)Skills: Computer programming and writing
 
Awards:
Honored with the Thiel Fellowship Award in 2014.Won the World Technology Network prize.Fortune’s 40 under 40 list and appeared on the Under 30 list of Forbes at the age of 23
Experience:
He has been the founder of Ethereum from November 2013 to the present.Buterin has contributed as a developer to other open-source software projects. He also contributed to DarkWallet.Buterin has been involved in various initiatives to improve blockchain technology and its applications.
FAQ
1. Who is Vitalik Buterin?One of the most well-known figures in the cryptocurrency space is Vitalik Buterin, who co-founded Ethereum, one of the biggest and most significant blockchain systems.2. What is the net worth of Vitalik?Vitalik’s net worth is 32 billion dollars, according to Forbes.
3. What does Vitalik Buterin invest in?Vitalik Buterin has made numerous investments in companies like Varro Life Sciences, Polymarket, and RISE (Singapore) within the healthcare technology systems, information services (B2C), and financial software industries.
coinpedia@gmail.com

EntrepreneurCrypto and Blockchain Expert

should be held responsible if they don’t act. He argues that allowing hackers to keep the stolen ETH makes Ethereum an indirect supporter of global terrorism.

Analyzing the situation, Justin Bechler said that Ethereum is facing an impossible choice. He argues that, if Ethereum rolls back the transactions through a hard fork, it would prove that Ethereum is centralized, contradicting the fundamental blockchain principle of immutability. 

However, if Ethereum does nothing, it risks being linked to terrorism financing, which could lead to severe regulatory consequences.

Should Ethereum Roll Back the Chain?

Some believe Ethereum should step in and reverse the transactions. Arthur Hayes, the co-founder of BitMEX and a big ETH holder, publicly asked Vitalik Buterin to roll back the network and return the stolen funds to Bybit. He points out that Ethereum already did something similar in 2016 after the infamous DAO hack, so why not do it again? But so far, Vitalik hasn’t responded.

However, doing this would confirm claims that Ethereum is centralized, meaning it can be controlled like a regular company rather than an independent blockchain. One of the biggest selling points of crypto is that transactions cannot be changed. If Ethereum breaks this rule, its reputation could take a huge hit.

Bitcoin Maxis Troll Ethereum

Bitcoin supporters, including Samson Mow, are having a field day. They’ve been posting identical tweets pretending that they and Vitalik are “discussing rolling back Ethereum.” Mow jokes that if Ethereum does this, they should create a separate version of Ethereum called ETHNK (short for North Korea Ethereum) that holds the stolen funds. Meanwhile, Binance and other big exchanges are stepping in to help Bybit by sending millions of dollars in ETH to support the exchange.

Also Read :   Crypto Market Hit Hard as $566 Million Liquidated After $1.4B Bybit Hack   ,

What Happens Next?

If Ethereum does nothing, the stolen funds could be used to finance North Korea’s cyberattacks, making Ethereum a target for global regulators. The U.S. could impose strict sanctions, making it harder for Ethereum to work with banks and businesses. On the other hand, if Ethereum interferes, it risks losing trust in the crypto community.

So the big question isn’t if Ethereum will face problems, but how fast they will come